Debt recovery question

[Simpo Two]

zarjaz1991 said:

Simpo Two said:

Or rather than wait 20 years until he moves house, get High Court bailiffs to take his car away. That usually gets the wallet open. You just need a CCJ first.

Depends if he owns it outright and if it’s worth enough to cover the debt and the fees, which will be substantial by that point.

Also if he needs it to earn a living that can be a defence against it being taken.

They have other options and powers, the car was just an example that worked for me. There will always be a 'depends' in debt recovery, every case is different. The OP's first hurdle is getting a CCJ and that depends on the evidence and finding the debtor. So a long way to go yet.

[James P]

CarlosSainz100 said:

CarlosSainz100 said:

That sounds just what I'm after.

Thanks!

You can get a CCJ registered as an interim charge. The court will then a hearing date to hear arguments for and against before deciding to make it permanent.

£3,000 is below the bankruptcy threshold so that is not available to you.

[Pro Bono]

Rufus Stone said:

If you get a judgment for full payment and he doesn't pay, you can apply for his bankruptcy or apply to lodge the debt against his home at Land Registry. He then can never move home without paying you.

You can't apply for bankruptcy, as the debt has to be at least £5,000.

If he owns his house in joint names, e.g. with his wife, you can only get a charging order against his share in the house. Unless you have a lawyer who is extremely clued up (and 99% aren't!) such a charging order will give you no protection if the house is sold, as it merely obliges him to let you know after the sale's been completed.

[Doofus]

If, as per your first post, they no longer live at their previous address, and you now don't know where they are, how do you know they own property?

[CarlosSainz100]

Because the money was lent to them in relation to the purchase of a house (basically a top up of their deposit).

[Rufus Stone]

Pro Bono said:

You can't apply for bankruptcy, as the debt has to be at least £5,000.

If he owns his house in joint names, e.g. with his wife, you can only get a charging order against his share in the house. Unless you have a lawyer who is extremely clued up (and 99% aren't!) such a charging order will give you no protection if the house is sold, as it merely obliges him to let you know after the sale's been completed.

Thank you for the clarification, I wasn't aware there was a minimum debt. I assume interest counts as part of the debt.

Are you sure about the charging order? Doesn't the charge remain registered against the property if not settled, and no new owner would consent to that?

[Pro Bono]

Rufus Stone said:

Thank you for the clarification, I wasn't aware there was a minimum debt. I assume interest counts as part of the debt.

It may count if the interest is charged in accordance with a written agreement that specifies the rate, but not otherwise.

Rufus Stone said:

Are you sure about the charging order? Doesn't the charge remain registered against the property if not settled, and no new owner would consent to that?

That's the point - with joint ownership the charging order is only registered against his share in the house, and not against the house itself.

Feel free to PM me if you need further details - I don't want to let the whole world know an important trade secret!

[CarlosSainz100]

The house is only in their name. I always assumed that when it came to remortgage the property this would be difficult if there was a charge against it?

[mr rusty]

If you have proof of the debt, these guys will sort it - they did for us with a £4K debt with a company that went bust shortly afterwards. https://cobrafinancial.co.uk/ You may end up with not quite the full amount because Cobra have their fees - although it may be possible to recover some of this. Even so, they're fast - better than the hassle of court claim which you still might struggle to collect even if you win.

[Simpo Two]

mr rusty said:

If you have proof of the debt, these guys will sort it - they did for us with a £4K debt with a company that went bust shortly afterwards. https://cobrafinancial.co.uk/ You may end up with not quite the full amount because Cobra have their fees - although it may be possible to recover some of this. Even so, they're fast - better than the hassle of court claim which you still might struggle to collect even if you win.

What powers do they have without a CCJ? Or is it just a punt that the debtor will cave in without a fight?

[CarlosSainz100]

From the looks of things they don't have any powers and are relying on the debtor to pay up with the shock of someone at their door.

I would imagine it's useful with a company; not so much with a personal debt like mine. But thank you for replying in any case.